Tag: Owners

When Large Loans for Business Are Right for Small Business Owners

Will Large Loans for Business Work for Your Business?

For business owners looking to scale, the old adage often rings true: “It takes money to make money.” You need funding to hire team members, manufacture products, buy equipment and cover marketing or administrative costs. All that adds up fast, leaving business owners on the hunt for financing. But when it comes to determining the size and kind of loan that is right for your business, you need to weigh long-term impact with short-term rewards. You need to determine if large loans for business will work for you.

Large loans for business loans tend to be $500,000 or more.  They may be a good option for entrepreneurs who need revenue but want to maintain ownership of their small business.

According to Matt Schulz, chief credit analyst at LendingTree, “Finding investors or partners can work, too. However, those partnerships can come with a lot of baggage.” He adds, “For those who are interested in maintaining control over their business, a business loan might be preferable to adding more cooks in the kitchen.”

Here’s when to consider a large business loan for your small business and what you need to know before taking out the loan.

Consider taking out large loans for business when…

You need to buy new equipment

Whether you’re upgrading existing equipment or buying new tools, using large business loans to fund the initial purchase can be a good option, if you know the risks.

“It’s important to understand that large business loans often require collateral,” Schulz explains. “If you’re using the loan to buy new equipment, the equipment may be the collateral for that loan.”

That means you may have to surrender your new tools if you can’t pay the bills. But using equipment as the collateral tends to be less risky than offering other parts of the business (or even personal assets) instead.

It’s time to move into a bigger space

Owning your own office has its advantages, including potential tax breaks and the ability to customize the space. But it can also come with a hefty price tag. Especially if you want to own a storefront in a popular retail space with a lot of foot traffic.

Enter commercial real estate loans. On average, this financing option covers 60% to 90% of the property’s value, up to $1 million. Since you’ll own the property, your equity will build over time. Plus you’ll have the benefit of an asset that is likely to grow in value. Like a loan for equipment, a commercial real estate loan is secured by the actual property. This means you may lose the real estate if you fall behind on your payments. But you can always consider renting the space if your own business doesn’t take off like you planned.

You want to buy an existing business

If you’re looking to buy a competitor or buy into a franchise, large loans for business can provide the capital you need to make the purchase. When it comes to how much you can qualify for, , you’ll need to provide the lender with a business valuation. Typically, the stronger the valuation, the more funding you’ll receive.

Use the loan for items secured by collateral, like office space or equipment, or for intellectual property. But a loan not secured by collateral will be harder to qualify for and have more restrictions. You may also have to lean more on your personal credit score and business cash flow to prove to the lender that you can pay them back.

Three key points to remember when you take out large loans for business

  1. Large business loans are harder to secure

Per a recent survey, business applications were up 69% in April 2021 compared to the previous year. But those new businesses will have to temper their lending expectations. Large loans for business are often reserved for businesses in operation for at least three years. Strong cash flow, profit and loss statements and credit history also play an important part in getting these loans. .

“If you’re just getting your business off the ground,” Schulz explains, “a personal loan or a small business credit card is a better choice. They may not be as sizable as your typical large business loans, but they’re available to companies that are just getting started.”

As large business loans are harder to qualify for than some other funding options, it may take more time and effort to get them.

“Larger banks may be more willing to give larger loan amounts than smaller banks,” Schulz says. “As with any loan or any type of financial transaction, shopping around is really important. That first offer that you’re given may not be the best one you can get, so take your time.”

  1. Many large loans for business require collateral

As mentioned above, large business loans are risky for lenders. To reduce that risk, lenders tend to require collateral.

You can offer equipment, invoices, office buildings and even personal assets as collateral. Lenders can legally seize these items if you fail to make timely payments. It’s particularly risky to offer personal assets like your house as collateral. Because if the business struggles, you could lose both the business and your home at once.

So while they’re difficult to find, not all loans will require collateral.

“You can find large business loans without collateral,” Schulz says, “but the loans might be smaller and the interest rates possibly higher.”

  1. Large business loans come with large risk

The higher the business loan, the higher the risk that comes with it. Paying back $2,000, even if it requires help from personal assets, might not break you financially. But trying to come up with $450,000 could.

Business owners should consider this with care, , especially in tumultuous economic times like what we’ve experienced in the last year following the coronavirus pandemic.

“In any economy, it is risky to take on debt,” says Shulz. “In a volatile, wildly unpredictable economy like ours today, it can be even more challenging.

“The best advice is some of the oldest: Know thyself. If you are comfortable with the risk that comes with taking on a large business loan and think that it could be an important tool to help take your business to the next level, go for it. Just be sure to shop around and know the details of the loan before you sign on the dotted line.”

Ana Gotter is a business and financial writer with years of experience creating content on topics including personal loans, financial planning, business management, and business finances.

The post When Large Loans for Business Are Right for Small Business Owners appeared first on Credit Suite.

When Large Loans for Business Are Right for Small Business Owners

Will Large Loans for Business Work for Your Business?

For business owners looking to scale, the old adage often rings true: “It takes money to make money.” You need funding to hire team members, manufacture products, buy equipment and cover marketing or administrative costs. All that adds up fast, leaving business owners on the hunt for financing. But when it comes to determining the size and kind of loan that is right for your business, you need to weigh long-term impact with short-term rewards. You need to determine if large loans for business will work for you.

Large loans for business loans tend to be $500,000 or more.  They may be a good option for entrepreneurs who need revenue but want to maintain ownership of their small business.

According to Matt Schulz, chief credit analyst at LendingTree, “Finding investors or partners can work, too. However, those partnerships can come with a lot of baggage.” He adds, “For those who are interested in maintaining control over their business, a business loan might be preferable to adding more cooks in the kitchen.”

Here’s when to consider a large business loan for your small business and what you need to know before taking out the loan.

Consider taking out large loans for business when…

You need to buy new equipment

Whether you’re upgrading existing equipment or buying new tools, using large business loans to fund the initial purchase can be a good option, if you know the risks.

“It’s important to understand that large business loans often require collateral,” Schulz explains. “If you’re using the loan to buy new equipment, the equipment may be the collateral for that loan.”

That means you may have to surrender your new tools if you can’t pay the bills. But using equipment as the collateral tends to be less risky than offering other parts of the business (or even personal assets) instead.

It’s time to move into a bigger space

Owning your own office has its advantages, including potential tax breaks and the ability to customize the space. But it can also come with a hefty price tag. Especially if you want to own a storefront in a popular retail space with a lot of foot traffic.

Enter commercial real estate loans. On average, this financing option covers 60% to 90% of the property’s value, up to $1 million. Since you’ll own the property, your equity will build over time. Plus you’ll have the benefit of an asset that is likely to grow in value. Like a loan for equipment, a commercial real estate loan is secured by the actual property. This means you may lose the real estate if you fall behind on your payments. But you can always consider renting the space if your own business doesn’t take off like you planned.

You want to buy an existing business

If you’re looking to buy a competitor or buy into a franchise, large loans for business can provide the capital you need to make the purchase. When it comes to how much you can qualify for, , you’ll need to provide the lender with a business valuation. Typically, the stronger the valuation, the more funding you’ll receive.

Use the loan for items secured by collateral, like office space or equipment, or for intellectual property. But a loan not secured by collateral will be harder to qualify for and have more restrictions. You may also have to lean more on your personal credit score and business cash flow to prove to the lender that you can pay them back.

Three key points to remember when you take out large loans for business

  1. Large business loans are harder to secure

Per a recent survey, business applications were up 69% in April 2021 compared to the previous year. But those new businesses will have to temper their lending expectations. Large loans for business are often reserved for businesses in operation for at least three years. Strong cash flow, profit and loss statements and credit history also play an important part in getting these loans. .

“If you’re just getting your business off the ground,” Schulz explains, “a personal loan or a small business credit card is a better choice. They may not be as sizable as your typical large business loans, but they’re available to companies that are just getting started.”

As large business loans are harder to qualify for than some other funding options, it may take more time and effort to get them.

“Larger banks may be more willing to give larger loan amounts than smaller banks,” Schulz says. “As with any loan or any type of financial transaction, shopping around is really important. That first offer that you’re given may not be the best one you can get, so take your time.”

  1. Many large loans for business require collateral

As mentioned above, large business loans are risky for lenders. To reduce that risk, lenders tend to require collateral.

You can offer equipment, invoices, office buildings and even personal assets as collateral. Lenders can legally seize these items if you fail to make timely payments. It’s particularly risky to offer personal assets like your house as collateral. Because if the business struggles, you could lose both the business and your home at once.

So while they’re difficult to find, not all loans will require collateral.

“You can find large business loans without collateral,” Schulz says, “but the loans might be smaller and the interest rates possibly higher.”

  1. Large business loans come with large risk

The higher the business loan, the higher the risk that comes with it. Paying back $2,000, even if it requires help from personal assets, might not break you financially. But trying to come up with $450,000 could.

Business owners should consider this with care, , especially in tumultuous economic times like what we’ve experienced in the last year following the coronavirus pandemic.

“In any economy, it is risky to take on debt,” says Shulz. “In a volatile, wildly unpredictable economy like ours today, it can be even more challenging.

“The best advice is some of the oldest: Know thyself. If you are comfortable with the risk that comes with taking on a large business loan and think that it could be an important tool to help take your business to the next level, go for it. Just be sure to shop around and know the details of the loan before you sign on the dotted line.”

Ana Gotter is a business and financial writer with years of experience creating content on topics including personal loans, financial planning, business management, and business finances.

The post When Large Loans for Business Are Right for Small Business Owners appeared first on Credit Suite.

The post When Large Loans for Business Are Right for Small Business Owners appeared first on Buy It At A Bargain – Deals And Reviews.

Check Out all the Grants for Black Business Owners Out There!

Business Grants for Black Business Owners and So Much More

Are you one of the millions of black business owners in the US? Or are you starting a business? Money is always going to be an issue. What if you could get what is essentially free money? That’s what grants are (for the most part).

Looking for Grants for Black Business Owners – and Other Options

How do you find the best options for you?  How do you know if you need to be looking for grants or business loans? We recommend that you explore every option. This is because it will probably take a combination of funding options to fully fund your business.

Funding and Grants for Black Business Owners

There are grants for black business owners, but not necessarily for them exclusively. Still, there are other funding choices out there. Loans, crowdfunding, and even angel investors are all viable options. More on those later.

Business Grants for Black Business Owners

The government and private organizations want to GIVE you money! They are highly competitive and rarely enough to fund a business on their own. Still, grants are a great way to supplement other business funding. Also, they are still worth the effort to apply. There really isn’t anything to lose except time – it’s free money. So here are a few you can start with.

The Minority Business Development Agency

The Minority Business Development Agency (MBDA) is operated by the US Department of Commerce. It is dedicated to helping minority-owned businesses access the resources they need to grow and succeed. The MBDA is for both men and women. Grant competitions are regularly changing.

Visit the MBDA’s website for information on all current opportunities. Currently, the MBDA helps its members apply for grants via Grants.gov. This involves help with how to apply for government grants. See also mbda.gov/grants.

Enterprising Women of Color Initiative

The MBDA oversees the Enterprising Women of Color (EWOC) Initiative. The initiative focuses on the fast-expanding minority women entrepreneur population as a revenue generators for families, communities, and the nation. Minority women are the fastest growing population of entrepreneurs. While many women are making tremendous strides in the business world, they still face obstacles as entrepreneurs.

MBDA serves as an advocate for women’s economic empowerment. They do so by supporting efforts to advance women’s equality and promote women economic advancement programming. The vision of EWOC is to ensure women worldwide to reach their economic potential. See also mbda.gov.

The Verizon Small Business Recovery Fund

The Verizon Small Business Recovery Fund is new. It was established in response to the COVID-19 pandemic. The fund offers $10,000 to successful applicants. The fund is specifically focused on providing grants to business owners of color, women-owned businesses, and other underrepresented entrepreneurs. See also lisc.org/covid-19/small-business-assistance/small-business-relief-grants/verizon-small-business-recovery-fund

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The association states its purpose is to help newer businesses that have an African American ownership. This is a pitch competition for startup businesses. See also nbmbaa.org/scale-up-pitch-challenge.

Demolish your funding problems with 27 killer ways to get cash for your business.

Amber Grant

Black businesswomen have even more options open to them. The Amber Grant awards one prize of $10,000 per month to a woman-owned business. One of the recipients also receives an extra $25,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee. See also ambergrantsforwomen.com/get-an-amber-grant/apply-now

Cartier Women’s Initiative Award

Black businesswomen can also try for a Cartier award. This award is for women and there’s no specification that a woman be a member of a minority group. The Cartier Women’s Initiative Award has a regional category award and a science and technology award. The regional award is $100,000 for first place, with $30,000 for second and third place.

The award goes to three women from each of seven international regions. So this award is a grant to 21 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information. See also cartierwomensinitiative.com/about-us

Cartier Science and Technology Pioneer Award and Fellowship

The Cartier Science and Technology Pioneer award is new as of 2021. With this award, three more women impact entrepreneurs at the forefront of scientific and technological innovation will be recognized for a new thematic award. Open to women entrepreneurs from any country and sector, this award will highlight disruptive solutions built around unique, protected, or hard-to-reproduce technological or scientific advances.

The laureate will be awarded a $100,000 grant. Each of the two remaining finalists will receive a $30,000 grant.

Cartier also offers a fellowship program. The fellowship is an educational program geared towards the 24 fellows selected each year. This program aims to equip the fellows with the necessary skills to grow their business. Also, it helps them to build their leadership capacity by drawing upon the experience and expertise of an array of academics, practitioners, industry experts, and entrepreneurs.

The fellowship isn’t exactly a grant. But while it’s not a monetary award, the mentoring and networking opportunities could be worthwhile to apply for. See also cartierwomensinitiative.com/fellowship-programme.

Demolish your funding problems with 27 killer ways to get cash for your business.

The Native American Business Development Institute (NABDI) Grant

Are you also part Native American? Then check out this grant.

The NABDI Grant is funded by the US Department of the Interior’s Bureau of Indian Affairs. It provides funding to business owners of Native American or Alaskan Native descent. In 2019, it gave over $727,000 to 21 indigenous tribes. So this was to support economic feasibility studies for specific economic development projects or startups.

For 2020, NABDI planned to award 20-25 grants. There is no minimum or maximum amount of funding you can request. But most awards range from $25,000-$75,000. They only fund projects for one year at a time. So this is when they expect projects to be completed. To apply for a NABDI grant for your proposed economic development feasibility study, go to bia.gov/service/grants/tedc/apply-nabdi-grant.

Indian Affairs

For black business owners also with Native American heritage, it doesn’t stop there. There is more available via the Bureau of Indian Affairs. You can get financing from the federal government through the Indian Affairs branch. A person can fill out an application for up to $500,000. But business entities and tribal enterprises may apply for more.

Potential borrowers can apply with any lending institution. They just have to use the application for Indian Affairs. There are more requirements if you use the funds for construction, renovation, or refinancing. In general, you must supply a list of collateral, a credit report, and an analysis of business operations. See also bia.gov/as-ia/ieed/loan-guaranty-insurance-and-interest-subsidy-program.

The South Asian Arts Resiliency Fund

If your business is in the arts, and you’re also of South Asian descent, then check out this fund. The fund is run by the India Center Foundation. It supports US-based South Asian arts workers impacted by the COVID-19 pandemic.

The fund will disburse grants up to $2,000, depending on financial need to US-based arts workers of South Asian descent. This includes those in the performing arts, film, visual arts, and literature. Also, you must have heritage from Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Initial funding for the program is $20,000, but the India Center Foundation is soliciting donations to expand the grant program.

Eligibility for The South Asian Arts Resiliency Fund

To be eligible, applicants must be of South Asian descent. Also, they must work in the arts and demonstrate loss of income due to COVID-19. Also, applicants must be:

  • at least 21 years old
  • not enrolled in a degree program, and
  • can receive taxable income in the US

You can put grant funding toward any artistic project you can develop, create, and present within 4-6 weeks of funding. See also theindiacenter.us/artsfund.

Demolish your funding problems with 27 killer ways to get cash for your business.

Grants from the Federal Government

Grants.gov is a running list of over 1,000 available federal government grants. The website compiles grants from over two dozen government agencies. These include the SBA, USDA, and the US Department of Commerce. To find a grant right for your business, use the Search Grants tool on the website. You can sort through the list by keyword or opportunity number.

First, locate the grant you wish to apply for. Then click the opportunity number for more detail. There, you will find more information about the specific grant plus any documentation you need. To apply for a grant through Grants.gov, first register. Then, download an application package for the grant you want. Be ready for a lengthy process. See also grants.gov.

An Alternative to Grants for Black Business Owners: Crowdfunding

If you would rather not rely on grants so much to fund your business, crowdfunding is a viable option. Keep in mind, not everyone with a campaign on a crowdfunding site succeeds. More unique products and services tend to do better. Kickstarter and Indiegogo are two of the most popular crowdfunding platforms to use. Some platforms may have higher success rates.

An Alternative to Grants for Black Business Owners: Angel Investors

Angel investors are informal investors. Essentially, you sell a part of your business to them. But they tend to not want too much of your business. Also, they won’t pass by more conventional businesses, like crowdfunding and venture capital. Hence they can also supplement or replace grants.

An Alternative to Grants for Black Business Owners: Loans

If grants aren’t an option, loans might also work.

Business Center for New Americans

Also an immigrant? Then try the Business Center for New Americans. They offer a pilot program for microloans up to $75,000. They work with immigrants, refugees, women, and other minority entrepreneurs. The goal is to help minority business owners who have not been able to get traditional financing. Terms are 3% interest. Loan repayment term goes up to a year. See also accompanycapital.org.

Grants for Black Business Owners: Takeaways

There are several options for grants for minority business owners. Black entrepreneurs should apply for whichever grants they feel they are most likely to get. Other options for funding include crowdfunding, angel investors, and loans. Credit Suite can help you get the funding you need.

The post Check Out all the Grants for Black Business Owners Out There! appeared first on Credit Suite.

How to Use Paid Ads to Market to Pet Owners Effectively

American pet owners are some of the biggest spenders online, pet food and pet supplies being second only to vitamins for e-commerce. 

Pet owners among biggest spenders online

Online spending for this $70 billion industry is growing year over year.

In fact, direct-to-consumer (DTC) pet brands have exploded in popularity: Over five years, the online pet product sellers saw a compound annual growth rate of 24 percent.

From special-diet foods to raincoats for dogs, desirable pet products can be very specific. Paid ads on search and social let you bid on relevant keywords to hyper-target an audience that perfectly fits your brand.

In this article, I’ll give you nine ways to use paid ads you could effectively market to pet owners.

9 Ways to Target Pet Owners Using Paid Ads

Downtown Pet Supply, an Illinois-based company that makes its own products and sells them both online and in their store, wanted to improve its e-commerce sales and expand customer reach.

They turned to marketing firm Tinuiti (then called CPC Strategy) to help them do that through Amazon. Tinuiti decided to utilize Amazon Coupons targeting pet owners based on their Amazon search histories. 

After one year, Downtown Pet Supply’s revenue increased by 40 percent, and its advertising cost of sale (ACoS) decreased by 18 percent.

That’s the power of using paid ads to target pet owners.

Common Thread Collective reports 13 percent of pet supply sales happen via e-commerce channels—and that’s expected to grow drastically over the next several years. 

Targeting Pet Owners Through Paid Ads - pet owners buy 13 percent of products online

The anticipated increase in e-commerce purchases for pet supplies is largely because of convenience and value. However, shoppers also appreciate being able to find a larger selection and compare prices more easily than in brick-and-mortar stores.

Even for brick-and-mortar establishments, paid ad campaigns can extend customer reach and raise awareness of their brands.

Here are the best ways to harness the power of paid ads to help your company boost revenue.

1. Answer Pet Owners’ Questions

When pet owners go online, they’re looking for a solution to an immediate problem. It may be their pet is sick, and they want to know why. They may need chew toys or a scratching post. Or, they may just be looking for a convenient place to buy everyday pet supplies.

The most common question pet owners ask is, “Why?”

Here are the top 10 questions pet owners ask Google:

Why do dogs:

  1. Lick?
  2. Eat grass?
  3. Eat poop?
  4. Howl?
  5. Hump?
  6. Smell?
  7. Bark?
  8. Shake?
  9. Scratch?
  10. Bite?

Why do cats:

  1. Purr?
  2. Knead?
  3. Lick?
  4. Meow?
  5. Bite?
  6. Rub?
  7. Scratch?
  8. Eat grass?
  9. Sleep so much?
  10. Like boxes?

Each of these questions presents a micro-moment brands can address through ads or content marketing. They also create starting points for keyword research.

2. Use Content Marketing

Typically, your content marketing addresses those micro-moments for your users. Blog posts and articles can answer those health, feeding, grooming, and other questions. 

But, you don’t have to rely solely on SEO to get those posts found. You can also promote your posts through social on platforms you know your audience is using. 

PetPlate, a meal plan subscription service for dogs, created this promoted pin on Pinterest to boost a blog post called “Tips for Welcoming a New Puppy Into Your Home.”

pet owners find brands like PetPlate on social media

By directing users to their blog posts through Pinterest ads, PetPlate not only raises awareness of their brand but sets themselves up as a thought leader in their space.

3. Research Keywords Pet Owners Use

One major benefit of paid ads is the reliability of keywords. With organic search, you’re essentially making a well-researched guess about which keywords will perform.

With paid ads on Google, Facebook, and other platforms, you bid on keywords that already perform. High-performing keywords cost more, but they may not even be the keywords you want.

Instead of getting lost in a sea of ads vying for the most popular keywords, try going after less expensive keywords with lower, but steady performance.

For example, “pet beds” is a generic, popular keyword a lot of companies are bid on. However, if you sell, say, “machine washable cat beds,” consider going after those keywords instead.

Whatever you do, make sure your keywords match your target audience as well as your product or service.

Pro Tip: If you want to direct traffic to your products, insert the word “buy” in front of a keyword. For example, for “pet beds,” try “buy pet beds.”

4. Research Your Social Media Platforms

Millennials are the largest pet-owning demographic in the U.S., according to the American Pet Products Association (APPA). 

APPA President and CEO Bob Vetere says, “We know this generation is willing to pay more for quality products and services to improve the health and well-being of their pets. Today more than ever, pet owners view their pets as irreplaceable members of their families and lives, and it’s thanks to this that we continue to see such incredible growth within the pet care community.”

According to a study by online retailer Zulily, 77 percent of millennials prefer to buy certain pet products—toys, accessories, and food—online. However, there are no pet products strictly bought in-store these days, so it’s important to know where you can reach this audience. 

Luckily—or unluckily, depending on how you look at it—”Millennials utilize a diverse range of platforms since many platforms were released while they were growing up. Facebook is the platform that they utilize most frequently, often multiple times a day, followed by YouTube and Instagram,” according to GenGuru.

However, since they grew up as social media started taking steam, they’re also on pretty much every other social media site. Trying out all sorts of new media is normal for them. 

This all means you should not just look at the age group but also try to discover where products like yours fit the best. Then, put your money where it’s more likely to reach your target audience.

5. Use Images or Videos in Pet Ads

Purina wanted to learn if in-stream ads on Facebook could lift brand awareness with mobile users for a new product in their Fancy Feast line of cat food, Fancy Feast Savory Centers.  

In the first phase, they tested a variety of videos for other pet brands they owned, playing with length and messaging. They learned short, clear ads lifted brand recall, video views, purchase intent, and offline sales. 

With that knowledge, they repurposed an existing TV ad for Fancy Feast Savory Centers to a web video. In the process, they shortened it to fewer than 15 seconds and ensured it had a clear message with or without sound. They tested it against the TV ad to see which better raised brand awareness.

Facebook video ad targeting pet owners

They ran the test for six weeks through Facebook In-Stream Reserve, a line of premium ad spots, and found an 11 point lift in brand recall, 12 point lift in brand awareness, 91 percent video completion, and 1.5 percent incremental lift in sales.

You don’t necessarily have to target the most expensive video packages online as Purina did, but video and images can have a big impact on your paid advertising online.

Consider another example.

Below, there are paid ads for pet beds on the left and right sides of the Google search results. On the left are text-only ads, and on the right are Google Shopping Ads that feature images.

Pet owners Google search ad results

Google found 50 percent of online shoppers are more likely to purchase if there’s an image of the product. 

6. Provide a Service

To convert and keep new customers, you have to build relationships with them. Offer something that makes their lives, and the lives of their pets, easier.

If you’re already a service-based brand, that’s pretty easy to do. If you’re product-focused, you can still provide a service.

Let’s take another look at PetPlate.

Their paid ads for their product actually spin it as a service. They provide fresh-cooked food for dogs so owners don’t have to. 

Ad showing product as a service to pet owners

This ad showed how PetPlate could solve a problem for its audience.

7. Target Pet Owners in a Specific a Geographic Area

Brick-and-mortar stores and services might consider targeting a particular geographic area, something that’s very possible with Facebook, Instagram, and other platforms that allow for hyper-targeted advertising.

Of course, veterinarians, groomers, and other service-based businesses can benefit from geo-targeting on social. However, boutiques and small businesses that sell pet food and other supplies shouldn’t overlook the power of location-based social media ads. 

According to Zulily’s study, millennial pet owners prefer to shop for some products in person at smaller, locally owned pet shops. Those products include treats, bedding, and clothing items.

If you want to get super local, check out a social platform made for your area. A commonly-used app, Nextdoor, lets advertisers both pay for ad space and engage with users in their immediate areas.

Nextdoor may be a good choice because they report 45 percent of users have at least one dog and 25 percent have at least one cat. They also note that pets are a regular topic of conversations on their platforms. Why not become part of the conversation with paid ads?

9. Use an Influencer or Celebrity to Target Pet Owners

There are two types of influencers pet brands can go after: Humans and animals. 

There are plenty of human celebrities and influencers across social media who include their pets in their content.

Priyanka Chopra Jonas and Nick Jonas, for example, regularly feature their dogs Diana, Gino, and Panda on their Instagram accounts.

Pet owners may listen to celebrities who post about pets

The second type of pet influencer is the furry, scaly, and feathery type. Pet influencers, particularly cats and dogs, have a huge presence on virtually all social media platforms.

In fact, pet influencer content has a higher engagement rate than overall global engagement. While cats rule the internet overall, dogs are actually more popular on Instagram.

Ways to Target Pet Owners Using Paid Ads - Pet Influencer Content

There are all kinds of pet celebrities out there, from cats and dogs to pigs and hedgehogs. 

For instance, Waffles the cat is a celebrity on Facebook with 2.4 million followers.

Pet owners may respond well to pet influencers like Waffles the cat

Meanwhile, on Instagram, Tuna the dog commands a following of 2.1 million.

Pet owners may also respond to dog influencers like Tuna

Take a look at your audience and their social media habits. Who are they following? Do they have two legs or four? Then, choose the influencer that best fits your brand and your goals.

Conclusion

Paid ads on search and social media are an effective way to market to pet owners. It gives brands the opportunity to reach very specific audiences for their products and services, and then measure the success of each campaign.

Pet owners spend a lot of money online, and knowing where and how to reach them could help you increase conversion rates to your own pet supply site.

How could paid ads help your pet supply brand? 

Why Owners Opt for Small Business Credit Cards

Why Owners Opt for Small Business Credit Cards The small company bank card market is a quickly expanding market in the monetary solutions market. If you are preparing to get small company bank card, see just how your factors compare to those of various other company charge card owners: · Business charge card give reputation … Continue reading Why Owners Opt for Small Business Credit Cards

Why Owners Opt for Small Business Credit Cards

Why Owners Opt for Small Business Credit Cards

The small company bank card market is a quickly expanding market in the monetary solutions market. If you are preparing to get small company bank card, see just how your factors compare to those of various other company charge card owners:

· Business charge card give reputation as well as authenticity to your service. It is an abstract advantage, yet when business bank card business authorizes a company charge card for your small company, it provides a signal to various other sellers that your service has excellent, audio credit history. An organisation charge card is a really reputable imprimatur.

· For the start-up local business, or one which has a ruined document, an organisation charge card permits your service to restore a credit score or develop background. By making sure that this credit rating continues to be constantly favorable, you will certainly develop the structure for protecting a company finance or credit line need to you choose to broaden business in the future. Business bank card is your ensured credit line in the meantime.

· Monthly overhead are simpler to track with a company bank card. The regular monthly service bank card account declaration aids with the settlement of the acquisitions you make in support of your service.

· The efficiency of business charge card declaration is not restricted to tracking overhead. When you prepare your publications and also your monetary records for earnings taxes functions, it can additionally be utilized as a dependable– and also appropriate– alternate docudrama evidence.

· Business bank card and also individual charge card have comparable advantages as well as benefits. When you have a company charge card, you will certainly have a different possibility to take pleasure in price cuts, money back as well as awards factors on acquisitions of the solutions as well as items required for your organisation.

· When you have company charge card released to your workers, they can make acquisitions in behalf of your firm without progressing their very own funds, or utilize business bank card when they take a trip for service. Their use business charge card makes it simpler to represent costs.

· When you bill acquisitions to service credit scores cards, you obtain the opportunity to appreciate money discount rates. Costs to your service credit history cards constantly count as money acquisitions, considering that your organisation credit history card company will certainly take treatment of paying them soon later on.

· The acquisitions you make on your service charge card might get unique insurance coverage securities from business bank card business. In situation something ends up incorrect with the product you acquired through your company charge card, as well as the seller is not happy to return your cash, the insurance coverage security will certainly cover the quantity.

· There is rightful problem concerning the high rate of interest prices on company credit report cards. If you intend to bring an equilibrium, make certain you locate the service credit rating card with reduced passion prices.

When you do a whole lot of traveling, · The benefits service credit report cards provide excellent advantage.

Basically, it makes great company feeling to have an organisation bank card or 2 available.

· Business credit score cards give integrity and also authenticity to your company. It is an abstract advantage, yet when the service credit scores card firm accepts a company credit rating card for your little company, it offers a signal to various other sellers that your service has excellent, audio credit scores. · For the start-up tiny service, or one which has a ruined document, an organisation credit history card permits your organisation to restore a credit history or develop background. By guaranteeing that this credit scores background continues to be continually favorable, you will certainly develop the structure for protecting a service lending or line of credit score must you determine to increase the service in the future. Fees to your company debt cards constantly count as cash money acquisitions, because your service credit rating card provider will certainly take treatment of paying them soon after that.

The post Why Owners Opt for Small Business Credit Cards appeared first on ROI Credit Builders.

Why Owners Opt for Small Business Credit Cards

Why Owners Opt for Small Business Credit Cards

The small company bank card market is a quickly expanding market in the monetary solutions market. If you are preparing to get small company bank card, see just how your factors compare to those of various other company charge card owners:

· Business charge card give reputation as well as authenticity to your service. It is an abstract advantage, yet when business bank card business authorizes a company charge card for your small company, it provides a signal to various other sellers that your service has excellent, audio credit history. An organisation charge card is a really reputable imprimatur.

· For the start-up local business, or one which has a ruined document, an organisation charge card permits your service to restore a credit score or develop background. By making sure that this credit rating continues to be constantly favorable, you will certainly develop the structure for protecting a company finance or credit line need to you choose to broaden business in the future. Business bank card is your ensured credit line in the meantime.

· Monthly overhead are simpler to track with a company bank card. The regular monthly service bank card account declaration aids with the settlement of the acquisitions you make in support of your service.

· The efficiency of business charge card declaration is not restricted to tracking overhead. When you prepare your publications and also your monetary records for earnings taxes functions, it can additionally be utilized as a dependable– and also appropriate– alternate docudrama evidence.

· Business bank card and also individual charge card have comparable advantages as well as benefits. When you have a company charge card, you will certainly have a different possibility to take pleasure in price cuts, money back as well as awards factors on acquisitions of the solutions as well as items required for your organisation.

· When you have company charge card released to your workers, they can make acquisitions in behalf of your firm without progressing their very own funds, or utilize business bank card when they take a trip for service. Their use business charge card makes it simpler to represent costs.

· When you bill acquisitions to service credit scores cards, you obtain the opportunity to appreciate money discount rates. Costs to your service credit history cards constantly count as money acquisitions, considering that your organisation credit history card company will certainly take treatment of paying them soon later on.

· The acquisitions you make on your service charge card might get unique insurance coverage securities from business bank card business. In situation something ends up incorrect with the product you acquired through your company charge card, as well as the seller is not happy to return your cash, the insurance coverage security will certainly cover the quantity.

· There is rightful problem concerning the high rate of interest prices on company credit report cards. If you intend to bring an equilibrium, make certain you locate the service credit rating card with reduced passion prices.

When you do a whole lot of traveling, · The benefits service credit report cards provide excellent advantage.

Basically, it makes great company feeling to have an organisation bank card or 2 available.

· Business credit score cards give integrity and also authenticity to your company. It is an abstract advantage, yet when the service credit scores card firm accepts a company credit rating card for your little company, it offers a signal to various other sellers that your service has excellent, audio credit scores. · For the start-up tiny service, or one which has a ruined document, an organisation credit history card permits your organisation to restore a credit history or develop background. By guaranteeing that this credit scores background continues to be continually favorable, you will certainly develop the structure for protecting a service lending or line of credit score must you determine to increase the service in the future. Fees to your company debt cards constantly count as cash money acquisitions, because your service credit rating card provider will certainly take treatment of paying them soon after that.

The post Why Owners Opt for Small Business Credit Cards appeared first on ROI Credit Builders.

5 Most Common Mistakes Business Owners Make in a Recession

Mistakes happen.  When under pressure, even more mistakes happen.  If business owners have ever been under pressure, it’s now.  COVID-19 has thrown the economy for a loop, and business owners can’t makes heads or tails of it.  Before you do anything else, take a look at the relief options available, including the Paycheck Protection Plan.  Then, consider these common mistakes business owners make in a recession, and how to avoid them.

Avoid these Common Mistakes Business Owners Make in a Recession to Make it out of the Recession Twilight Zone

A recession can be a hugely stressful time.  Not only can finances be in shambles, but the stress can take a toll on many other things as well.  During a recession it can seem that all is lost, but avoiding these common mistakes business owners make in a recession could help.  It certainly won’t hurt.

Imagine you wake up tomorrow in the twilight zone, and it lands you right in the middle of recession land.  You may be feeling the effects of the recession even now. Here is what not to do if you want to survive. Avoid these mistakes, and your business could just make it out alive.

Common Mistakes Business Owners Make in a Recession: Moving Too Fast

While you definitely have to spend money to make money, it is necessary to be a little more careful during a recession.  Spend money cautiously and only when the payoff is certain to avoid this and other common mistakes business owners make in a recession.  That’s not to say that you can’t ever take a risk, but definitely don’t do it too quickly.

For example, if you have the opportunity to purchase inventory at a cut rate, it may seem the best idea is to purchase as much as you can.  After all, if you sell it at the same price as before, you will still make a larger profit because the cost to you was less.

This is one of the common mistakes business owners make in a recession, because it makes sense when you are not in a recession.  However, with people having less disposable income to spend, it is possible that that inventory will not move. Then, you are stuck with inventory you cannot sell, and a lot of it.

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The Better Option

Considering the financial hard times, take a minute to evaluate things.  Why is there a cut rate on the inventory? Is the wholesale provider is having a hard time moving it?  If that is the case, you may have the same problem. Pay attention to your customers and your current inventory.  Do you see any downward trends?

There a few options here that may be more beneficial.  First, consider not stocking up on the inventory at the reduced rate.  Maybe buy a little more than normal, but focus instead on the option the reduced rate gives you to lower your own prices.

The better decision is to evaluate how the recession is affecting the industry and the markets around you.  Then, make decisions about how much of the discount inventory to purchase based on that. From there, you can make a plan for how to make the most of the discount.  

That may mean that you have a sale offering the cheaper inventory at a price below what your competitors are offering.  Another option is to purchase enough to lower prices for the duration of the recession.

The only way to make these decisions however, is to have thorough market research.  That may cost money as well, but it is a much better use of the funds than wasted inventory.  It will take time, but the slowdown will definitely be worth it.

Common Mistakes Business Owners Make in a Recession: Failing to Plan

One of the most important parts of running a business is planning for the unexpected.  This includes planning for a recession. That is one of the most common mistakes business owners make in a recession.  They panic, and either forget their plan, or they realize they never had a plan.

The first way to avoid this mistake is, obviously, to make a plan.  If you have a plan, now is the time to put it into action. Don’t panic.  Take stock of your expenses and revenue. Adjust expenses accordingly as much as possible.

Keep a watch on the market to see how your particular industry is responding to the recession.  Use what you learn to tweak your plan as necessary. The point is, if there is a plan, use it. If not, it’s never too late to avoid this one of the most common mistakes business owners make in a recession.  Make a plan and put it into action.

Not Having Fail Safe

You always need a safety net.  Unfortunately, one of the common mistakes business owners make in a recession is not realizing this until they are in the middle of a recession.  Technically, that is the mistake made before the recession.

The “in recession” mistake is actually not trying to do something about it.  If you catch the problem soon enough, you may be able to take action. What type of “fail safe” do you need?

Credit Card

A credit card that is open can help you float until you find a more permanent fix for whatever woes the recession is causing you.

Line of CreditCommon Mistakes Business Owners Make in a Recession Credit Suite2

A line of credit works similar to a credit card in that it is a revolving line of credit, but it does not carry the same types of interest rates and terms that a credit card does.

Whether you get a credit card or a line of credit, it is important to remember to use it only to get you over a hump.  It has to be paid back, and you need to be sure you can do that. These are tools that could be useful if you have customers that cannot pay invoices, or if you need to take advantage of a special deal like in the example above.  

However, if you find you are continually using these “safety nets” to simply run the day to day operations of your business, you need to do more. You are going to have to find the leak and shore it up.

What if…?

There are a few other options if you have already waited too long.  For example, you can consider factoring your invoices. This will allow you to access cash immediately, often without a credit check.  Also, you do not have to worry about paying the money back, as your lender will collect the payments on the invoices directly.

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Be aware however, they will purchase them at a premium.  You will not get the full value of the invoices, but if you need the cash fast, it may be worth it.

Another option is a merchant cash advance.  If you accept credit card payments, a lender may advance you funds based on your average daily credit card sales.  Then, they collect repayment from those future sales, typically daily.

Common Mistakes Business Owners Make in a Recession: Trying to Take on Too Much

It is easy during a recession to try to save money by cutting staff.  While there may be a time for this, one common mistake business owners make in a recession is trying to save money by doing everything themselves.  

That just is not always the answer.  If you are trying to do the day to day operations as well as the bookkeeping, cleaning, advertising, and even purchasing yourself, you are going to burn out.  Not only that, but things are going to start slipping through the cracks. Bills will be missed. Orders will not get entered. Invoices will not get sent.

These things are just as detrimental to a business as paying employees you cannot afford.  What is the better option? The first thing is to not let go of a bunch of employees out of panic.  Slowly and carefully evaluate each job. Do you have any positions that can be combined? If so, do you have employees capable of accomplishing the tasks of both positions?  

Better Options

Is it possible to cut one position, split it between two others, and raise the pay of the other two but by less than what the cut position was making?  No one likes to let go of good employees at all, but taking the time to evaluate all of the options is much better for everyone than a massive axing party.

Additionally, consider which jobs can be outsourced.  Outsourcing can save money because you do not have the additional payroll costs that go along with an employee.  Janitorial services, bookkeeping, and social media marketing can all lend themselves well to outsourcing depending on the situation.

Common Mistakes Business Owners Make in a Recession: Thinking You Can Do It All

Another of the common mistakes business owners make in a recession is not playing to their strengths.  This is similar to taking on too much, but for different reasons. While it may seem like you are saving money by not paying someone else to do certain things, it can definitely cost money to do things that you are not good at.  

We all have certain strengths, and not knowing yours can be a money drain. If you are not good with the books, don’t try to do them.  A mistake in that area can be very costly. If you are not great at managing people, assign that task to a trusted employee. Know your strengths and your weaknesses, and delegate tasks accordingly.

Do not let the fact that you are operating in a recession cause you to try do work in areas where you are weak in an effort to save money.  It won’t work, and during a recession it could cause even more damage than it would otherwise.

Cutting Prices Too Soon or Too Much

When things start to look scary, it is almost a reflex reaction to cut prices. The idea is that If you offer a better deal, more people will do business with you.

This isn’t always the case. If your products are not at a price the market supports, it might work. Otherwise, you may see an increase at first, but long term it isn’t going to be a good thing.

People are willing to pay for a quality product. If you are struggling, it is best to figure out what they are buying instead of what you have for them. It could be the demand just isn’t there.

In a recession it is quite likely that people just do not have the disposable income necessary to purchase your product or service. In fact, it is even more likely than not.  The answer then is not necessarily as easy as a price cut.

A price cut could work, if you can maintain quality.  A better option is to be flexible and figure out what they are able to spend money on.  For example, if you specialize in premium quality boutique clothing, consider adding inventory that is not as expensive.  Call it something that sounds catchy, like “economy boutique,” and you just may have something that will get you through the recession.

In the restaurant business, consider offering specials at reduced rates to make what you have a better deal for customer that they can better afford.

Forgetting How Much Quality Counts

Truly you get what you pay for, and a hugely common mistake business owners make in a recession is that they forget that.  This rings true in all aspects of business from inventory to supplies, and even employees.

There is a fine line between saving money and sabotaging yourself.  You cannot purchase lower quality inventory, charge the same, and expect that profit increase to hold.  Word will spread. You can’t pay less than the competition and expect your employees to be top notch.

Keep in mind that for you and your customers, quality counts, always.  You get what you pay for, and your customers expect to get what they pay for.

Common Mistakes Business Owners Make in a Recession: It’s Never too Late to Build Business Credit

If you don’t already have established business credit, that can go a long way toward helping your business through a recession as well. Incorporate your business and get an EIN from the IRS.  Make sure your business has a different address and phone number from your own, and sign up for a DUNS number from Dun & Bradstreet.

Once these things are done, check into doing business with starter vendors.  These vendors, such as Uline, Quill, and Grainger will offer invoices with net terms. They do this without checking your credit score, and they will report your payments to the business credit reporting agencies.  

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In this way, you can begin to build business credit even during a recession.  If you make your payments on time, you can continue to build it by applying for credit from the retail credit tier, the fleet credit tier, and the cash credit tier.  Then, if you need funding to help get you through the recession, you will have it. It takes time, but it’s never too late to start.

Avoid these Common Mistakes Business Owners Make in a Recession and Keep Your Business Going Strong

Of course, there are no guarantees the recession won’t pull you under, but there are things you can do to make it less likely.  If you are careful to not make these common mistakes business owners make in a recession, and pay attention to what is going on around you, your business just may have a fighting chance of making it out of the recession twilight zone intact.

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Top Business Loans for Minority Business Owners

It’s no secret. Minorities suffer challenges that are unique to them.  Certainly, one of those challenges is how hard it is to find business loans for minority business owners.  So,how do you find loans for minority business owners? 

The 8 Best Business Loans for Minority Business Owners

To clarify, not all of these loans are loans only for minority business.  Nonetheless, they all tend to work well for minority business owners. 

1. SBA 7(a) Loans & 8(a) Business Development Program

These loans are open to all small business owners.  However, if a minority business owner takes part in the SBA Business Development program, they increase their chance of getting this type of loan.  

Honestly, about 80% of SBA loan applications from Hispanic and African Americans are for $150,000 or less.  This is according to the SBA itself. Surprisingly, these smaller loans seem to be harder to get. Honestly, this is probably because lenders don’t make as much money from them.

In fact, in late 2018, the SBA got rid of the 2% fee for loans that are less $150,000 to help with this.

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2. SBA Community Advantage Loans

These are to meet the needs of small businesses in neglected markets.  Of course, that includes minorities. The goal is to get local lenders to increase loans up to $250,000.  It does this by backing up to 85% of the loan amount. It helps small business owners who might not be able to get traditional financing. 

3. SBA Microloan Program

First, business loans for minority business owners go up to $50,000 through this program. Secondly, funds come from a third-party lender.  Usually, these are community nonprofit organizations. Often, they offer management and technical assistance to business owners alongside the loan. These loans are available to all small business owners.

4. Accion U.S. Network

Accion offers loans in all states.  Funds are available to the following: 

  • minorities 
  • veterans
  • women
  • those with disabilities
  • and low to medium income business owners 

Generally, loan amounts start at $200,000 and go up to $300,000. In addition, Accion can put owners in contact with others to help build a network of support.

Comparatively, the minimum credit score for these loans is 575.  Also, you cannot be 30 days late on paying anything. Finally, you will not qualify if you have any late rent or mortgage payments over the past year.

5. Union Bank Business Diversity Lending Program

This program from Union Bank offers business loans for minority business owners. Indeed, this one is specifically for minorities. In fact, to qualify, you must be Hispanic, American Indian, Latino, Asian, Alaskan Native, African American, Native Hawaiian, or other Pacific Islander.    

Furthermore, a business that makes up to $20 million could qualify for a loan of $2.5 million.  However, you must be in business for at least 2 years. Likewise, the minority business owner must own at least 51 percent. 

6. The National African American Small Business Loan Fund

This is a partnership between JP Morgan Chase and the Valley Economic Development Centers .  It serves small businesses with minority owners that are in low income or medium income communities.  However, only those in New York, Los Angeles, and Chicago are eligible.  

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7. Business Center for New Americans

Presently, The Business Center for New Americans offers minority business loans of $5,000 to $50,000.  They work with immigrants, refugees, women, and other minority entrepreneurs. They work with minority business owners who have not been able to get traditional financing.  

8. Camino Financial 

Camino Financial is an online lender.  In like manner, they offer business loans for minority business owners. Conveniently, their entire application process is online.  Microloans range from $5,000 to $50,000.  In addition, they also offer small business loans between $10,000 to $400,000. 

Loans for Minority Business Owners: Other Options

Chances are, you are going to need funding from more than one source.  Of course, loans are the top option, with grants coming in a close second.  Don’t underestimate angel investors and crowdfunding however, as they definitely have their place. 

The thing is, funding isn’t just a one and done thing.  You are going to need funding throughout the life of your business.  As a result, you need to make sure you have access to the most and best possible funding options available.  To do this, you must work on fundability.  

Loans for Minority Business Owners and Fundability 

Unlike many things in the world, the factors that affect fundability are the same for everyone.  It doesn’t matter if you are a minority or not. What is fundability? 

Fundability is the ability to get funding for your business.  How does a business become fundable? What makes this answer complicated is that there is so much it must cover.  Sure, a great business credit score is important.  In addition, many of the aspects necessary for a strong business credit score are necessary for fundability as well.  There is so much more though.

A potential creditor needs to see that your business is legit and profitable.  Many loan applications are denied approval due to fraud concerns.  Something as seemingly unimportant as an address that hasn’t been updated can cause a problem.

Still, it’s best to start at the beginning.   Before you can build fundability at all, you have to have a foundation of fundability. 

The Foundation of Fundability for Loans for Minority Business Owners and More

The foundation of fundability is in how your business is set up.  It has to be set up to appear to be a fundable entity separate from you, the owner.  How do you accomplish this?  Well, like any foundation, it is best to start at the beginning.  It will be faster and easier if you do. However, if your business is already up and running, then you may not have that option.  That’s okay.  It’s never too late to start, but start now. For several reasons, the longer you wait the harder it will be. 

To have a fundable foundation you will need the following. 

  • Separate contact information

  • An EIN

  • To be incorporated

  • A dedicated business bank account

  • All the proper licenses

  • A professional business website

In addition to a fundable foundation, there are many other factors that can and will affect the fundability of your business. 

Business Credit Reports

These are much like your consumer credit reports.  Except, they detail the credit history of your business.  Chiefly, they help lenders determine how credit worthy your business is.  

Basically, the main sources of business credit reports are Dun & Bradstreet, Experian, and Equifax.  You have no way of knowing if your lender will choose to use one of these agencies, or another, less commonly used option.  To that end, you need to make sure your reports with all the credit agencies are up to date and accurate. 

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Other Business Data Agencies 

In addition to those agencies that directly calculate and issue credit reports, there are other business data agencies that affect those reports indirectly.  Two examples of this are LexisNexis and The Small Business Finance Exchange. They collect data from a variety of sources.  These include public records.  This means they could even have access to information relating to automobile accidents and liens. Honestly, you probably will not be able to access or change the data these agencies have on your business.  Instead, you should focus on making sure new information they receive is positive.  Enough positive information can help counteract any negative information from the past. 

Identification Numbers 

In addition to the EIN, there are identifying numbers that go along with your business credit reports.  You need to be aware that these numbers exist.  Some of them are simply assigned by the agency, like the Experian BIN.  One, however, you have to apply to get. It is absolutely necessary that you do this. 

Dun & Bradstreet is the largest and most commonly used business credit reporting agency.  Every credit file in their database has a D-U-N-S number.  To get a D-U-N-S number, you have to apply for one through the D&B website. 

Business Credit History

This is where the rubber meets the road when it comes to credit reports.  Your business credit history has everything to do with everything related to your business credit score.  That in turn, is a huge factor in the fundability of your business.  

Your credit history consists of a number of things including: 

  • How many accounts are reporting payments?
  • How long have you had each account? 
  • What type of accounts are they?
  • How much credit are you using on each account versus how much is available?
  • Are you making your payments on these accounts consistently on-time?

The more accounts you have reporting on-time payments, the stronger your credit score will be. 

Business Information

On the surface, it seems obvious that all of your business information should be the same across the board.  However, things slip through the cracks when you make changes. An address or name change can cause a problem if you don’t change it on everything.

A ton of loan applications are turned down each year due to fraud concerns simply because things do not match up.  Maybe your business licenses have your personal address but now you have a business address.  You have to change it. Some of your credit accounts could have a different name or phone number listed than what is on your loan application. Do your insurances all have the correct information?  

The key to this piece of the business fundability is to monitor your reports frequently for mistakes and updates.   

Financial Statements

This encompasses a broad spectrum of things.  First, there is the obvious. Both your personal and business tax returns need to be in order.  Not only that, but you need to be paying your taxes, both business and personal.  

Business Financials

It is best to have an accounting professional prepare regular financial statements for your business. Having an accountant’s name on financial statements lends credence to the legitimacy of your business. Have professional statements prepared at least annually. 

Personal Financials

Often tax returns for the previous three years will suffice.  Get a tax professional to prepare them.   Remember, this is the bare minimum you will need.  Other information lenders may ask for include check stubs and bank statements, among other things. 

Bureaus

There are many other agencies that hold information related to your personal finances.  You need to know about them as well.  Everyone knows about FICO. Your personal FICO score needs to be as strong as possible. Most traditional lenders will look at both personal and business credit.

In addition to FICO reporting personal credit, you have ChexSystems.  In the simplest terms, this keeps up with bad check activity. And it makes a difference when it comes to your bank score.  If you have too many bad checks, you will not be able to open a bank account.  In turn, that will cause serious fundability issues. 

For this point, everything comes into play.  Have you ever been convicted of a crime? Do you have a bankruptcy or short sell on your record?  All of this can and will play into the fundability of your business. 

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion all make a difference.  You need good personal credit.  Certainly, it will affect the fundability of your business. In fact, now is the time to work on it. Don’t wait. The number one way to get a strong personal credit score, or improve a weak one, is the same. It’s to make payments regularly on time. 

Also, make sure you keep an eye on things. Correct mistakes.  Make sure there are no fraudulent accounts. Just keep a general eye on things. 

Application Process

Finally, even the application process can affect fundability.  First, consider the timing of the application.  Is your business currently fundable?  Next, make sure your business name, business address, and ownership status are all verifiable.  Lenders will check.  Lastly, make sure you choose the right loan. Do you need a traditional loan or a line of credit? Would a working capital loan or expansion loan work best for your needs?  Choosing the right product to apply for is important. 

Loans for Minority Business Owners: Build Fundability 

There are some specific business loans for minority business owners available.  Nevertheless, the better option is to build fundability to increase your chances of approval for all funding options.  Obviously, the more fundable your business is, the better. Look for minority loans. Simultaneously, work on a fundable foundation.  Then, keep working. If your business is fundable, it can get the funding it needs to thrive and grow into the future. 

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